[DigitalToday reporter Hyunwoo Choo] A long-running debate over the paradigm of asset markets, “gold vs bitcoin”, is entering a new phase. As volatility in global markets increases, traditional safe-haven gold is repeatedly setting record highs. By contrast, bitcoin, once called “digital gold”, is struggling to hold major psychological support levels.

◆ “Real gold soared”... biggest rally since 1979

The 2025 precious-metals market had a record-setting year. Gold prices jumped more than 70 percent from the start of the year, serving as a refuge for investors seeking capital preservation. Silver’s performance was even more striking. Silver posted a remarkable rise of about 150 percent, achieving its strongest annual return since 1979. Platinum also climbed to record levels, forming a broad-based bull market across precious metals.

Behind the precious-metals rally are market expectations for interest rate cuts and persistent geopolitical risks. Investors have started returning to physical assets as a hedging tool against long-term currency risk and macroeconomic uncertainty. Data from the World Gold Council (WGC) support the trend. Holdings of gold-backed ETFs rose each month except for May 2025, suggesting steady inflows from demand seeking to build assets with a long-term view rather than short-term speculation. Holdings of the world’s largest gold ETF, SPDR Gold Trust, rose more than 20 percent in 2025 alone.

◆ Why bitcoin is lagging... leverage and macro headwinds

Bitcoin’s situation is different. In theory, if bitcoin had established its status as “digital gold”, it should have risen alongside gold, or delivered even higher returns, at a time of declining fiat currency value and heightened geopolitical crises. But in reality, bitcoin still reacts sensitively to macro volatility that has hit risk assets such as equities.

One key factor holding back bitcoin is positioning. The market is still digesting long-accumulated leverage-driven trading, and each price rebound triggers quick profit-taking that increases downward pressure. More volatile bond yields and a surging dollar are also obstacles for bitcoin. In an extreme “capital preservation” mode, money tends to flow first into proven safe-haven gold rather than volatile cryptocurrencies.

David Miller, chief investment officer at Catalyst Funds, offered a blunt diagnosis of the difference between the two assets. In a media interview, he stressed that “there were years when both gold and bitcoin showed record gains, but it is still clear that bitcoin is not digital gold.” Gold is firmly an “institutional” asset, already treated as a reserve asset by central banks worldwide, while bitcoin still has a strong “retail” character with a high share of individual investors, the analysis said.

Miller said gold serves as an alternative reserve asset to currency in a way bitcoin cannot. He argued that bitcoin may have meaning in portfolios as a long-term hedge against fiscal expansion or currency weakness, but there remains a large gap in stature before it can be placed in the same league as gold.

◆ Wall Street’s outlook is “golden”... what bitcoin must tackle in 2026

Major investment banks see gold’s strength continuing into next year. Goldman Sachs forecast in its base case that gold prices could rise to $4,900 per ounce in 2026, and it also left open the possibility of even higher prices depending on risk factors.

Ultimately, the current situation raises an important question for bitcoin. For bitcoin to be recognized as a true “digital store of value” beyond a high-return risk asset, it must prove “safe-haven credibility” like gold in times of crisis. It is a time that calls for technical and structural maturity that reduces leverage-dependent price volatility and secures a place in the portfolios of institutional investors and central banks.